ExpertThis question is part of a case study — click to read the full scenario(Case 46)
SCENARIO: Quantum Dynamics Ltd (QDL) is a tech startup developing AI cooling systems. On 1 May, QDL wrote to ServerTech Inc offering to buy 50 specialized servers for £100,000, stating 'Please reply by 10 May'. On 5 May, ServerTech posted a letter accepting the offer. On 6 May, QDL found a cheaper supplier and emailed ServerTech revoking the offer. ServerTech's letter of acceptance arrived on 8 May.
Based on the scenario, what is the legal status of QDL's email revocation on 6 May?
ACCA · Question 47 · Corporate and Business Law
SCENARIO: Quantum Dynamics Ltd (QDL) is a tech startup developing AI cooling systems. On 1 May, QDL wrote to ServerTech Inc offering to buy 50 specialized servers for £100,000, stating 'Please reply by 10 May'. On 5 May, ServerTech posted a letter accepting the offer. On 6 May, QDL found a cheaper supplier and emailed ServerTech revoking the offer. ServerTech's letter of acceptance arrived on 8 May.
If ServerTech had instead replied on 5 May stating 'We accept your offer, but the price will be £105,000', what would be the legal effect of this reply?
SCENARIO: Quantum Dynamics Ltd (QDL) is a tech startup developing AI cooling systems. On 1 May, QDL wrote to ServerTech Inc offering to buy 50 specialized servers for £100,000, stating 'Please reply by 10 May'. On 5 May, ServerTech posted a letter accepting the offer. On 6 May, QDL found a cheaper supplier and emailed ServerTech revoking the offer. ServerTech's letter of acceptance arrived on 8 May.
If ServerTech had instead replied on 5 May stating 'We accept your offer, but the price will be £105,000', what would be the legal effect of this reply?
Answer options:
It would be a valid acceptance, but QDL can dispute the price.
It would be a request for information.
It would be a counter-offer, which destroys QDL's original offer.
It would form a contract at the original price of £100,000.
How to approach this question
Full Answer
Common mistakes
Practice the full ACCA LW — Corporate and Business Law Practice Exam 1
60 questions · hints · full answers · grading